IDEAS home Printed from https://ideas.repec.org/b/wbk/wbpubs/2610.html
   My bibliography  Save this book

Adequacy of Retirement Income after Pension Reforms in Central, Eastern, and Southern Europe : Eight Country Studies

Author

Listed:
  • Ufuk Guven
  • Robert Holzmann

Abstract

All of the former transition economies in Central, Eastern, and Southern Europe (CESE) inherited from the era of central planning traditional defined-benefit pension systems financed on a pay-as-you-go basis. Like many pay-as-you-go public pension systems elsewhere in the world, CESE pension systems were in need of reforms to address short-term fiscal imbalances and longer-term issues relating to population aging. Reforms were also needed to adjust benefit and contribution structures to meet the challenges of-as well as to take advantage of opportunities relating to the transition to a market economy, including the widespread adoption of multiplier designs with improved risk-sharing across funded and unfunded pillars. By 2006, most countries in Europe and Central Asia had introduced a voluntary private pension scheme. By 2008, 14 countries roughly half of all countries in the region had legislated mandatory private pension schemes, and all but one of those schemes (the one in Ukraine) had been introduced. These reforms shared a number of common objectives, in particular putting the systems on a sounder financial footing and better aligning them with the (very different) incentives of a market economy. This report is organized as follows. The first section discusses the motivation for reform across the eight countries included in the study against the backdrop of the regional (and global) trend toward multiplier pension arrangements. The second section summarizes the key provisions of the reformed systems in the eight countries within the World Bank's five-pillar framework for pension system design. The third section summarizes pension system performance against the two crucially important dimensions of adequacy and sustainability. The last section provides some policy recommendations for addressing gaps in reforms and taking advantage of further opportunities.

Suggested Citation

  • Ufuk Guven & Robert Holzmann, 2009. "Adequacy of Retirement Income after Pension Reforms in Central, Eastern, and Southern Europe : Eight Country Studies," World Bank Publications - Books, The World Bank Group, number 2610.
  • Handle: RePEc:wbk:wbpubs:2610
    as

    Download full text from publisher

    File URL: https://openknowledge.worldbank.org/bitstreams/ce7984b4-e898-5061-892c-c6cd11465e4d/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Whitehouse, Edward, 1999. "The tax treatment of funded pensions," MPRA Paper 14173, University Library of Munich, Germany.
    2. Miroslav VerbiÄ & Boris Majcen & Renger Van Nieuwkoop, 2006. "Sustainability of the Slovenian Pension System: An Analysis with an Overlapping-Generations General Equilibrium Model," Eastern European Economics, Taylor & Francis Journals, vol. 44(4), pages 60-81, August.
    3. AfDB AfDB, . "AfDB Group Annual Report 2005," Annual Report, African Development Bank, number 61 edited by Koua Louis Kouakou.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grech, Aaron George, 2010. "Assessing the sustainability of pension reforms in Europe," MPRA Paper 27407, University Library of Munich, Germany.
    2. Krpan, Mira & Pavković, Ana & Galetić, Fran, 2019. "Comparison of Sustainability Indicators of Pension Systems in the New EU Member States," 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations (Dubrovnik, 2019), in: 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations. April 5th - 6th, 2019, Dubrovn, pages 470-484, Governance Research and Development Centre (CIRU), Zagreb.
    3. Hinrichs, Karl, 2015. "In the wake of the crisis: Pension reforms in eight European countries," Working papers of the ZeS 01/2015, University of Bremen, Centre for Social Policy Research (ZeS).
    4. Boena CHOVANCOVÁ & Jaroslav HUDCOVSKÝ, 2016. "Return-risk profile of Slovak pension funds," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2016(27), pages 94-106, Decembre.
    5. Klemen, SIROK & Laura-Maria, DIACONESCU, 2014. "The Role Of Work And Labour Market Flexibility In Working Life Prolongation: Case Slovenia," Management Strategies Journal, Constantin Brancoveanu University, vol. 26(4), pages 611-620.
    6. Juan-José Alonso-Fernandez & Robert Meneu-Gaya & Enrique Devesa-Carpio & Mar Devesa-Carpio & Inmaculada Dominguez-Fabian & Borja Encinas-Goenechea, 2018. "From the Replacement Rate to the Synthetic Indicator: A Global and Gender Measure of Pension Adequacy in the European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 165-186, July.
    7. Stefan Domonkos & Andras Simonovits, 2016. "Pensions in transition in EU11 countries between 1990 and 2015," CERS-IE WORKING PAPERS 1615, Institute of Economics, Centre for Economic and Regional Studies.
    8. Nikola Altiparmakov & Gordana Matković, 2018. "The development of private pensions in Serbia: caught between a generic blueprint and an unconducive local environment," Transfer: European Review of Labour and Research, , vol. 24(1), pages 57-71, February.
    9. Filip Chybalski & Edyta Marcinkiewicz, 2016. "The Replacement Rate: An Imperfect Indicator of Pension Adequacy in Cross-Country Analyses," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 99-117, March.
    10. DUMITRESCU, Bogdan-Andrei & DRAGHIA, Andreea Elena, 2019. "The Pension Formula In Romania €“ Inefficiencies And Possible Solutions," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 23(2), pages 61-74, June.
    11. Rudolf Sivák & Pavol Ochotnický & Andrea Čambalová, 2011. "Fiškálna udržateľnosť penzijných systémov [Fiscal Sustainability of Pension Systems]," Politická ekonomie, Prague University of Economics and Business, vol. 2011(6), pages 723-742.
    12. MLADEN, Luise, 2012. "Pension Reforms In Central And Eastern European Countries And Their Outcomes," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 3(1), pages 59-68.
    13. Elena Lucia Croitoru, 2012. "Analysis of Pension Reforms in EU Member States," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(2), pages 117-126.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Armstrong, Angus & Davis, Philip & Ebell, Monique, 2015. "An economic analysis of pension tax proposals," LSE Research Online Documents on Economics 86276, London School of Economics and Political Science, LSE Library.
    2. Diamandis, Panayiotis F., 2008. "Financial liberalization and changes in the dynamic behaviour of emerging market volatility: Evidence from four Latin American equity markets," Research in International Business and Finance, Elsevier, vol. 22(3), pages 362-377, September.
    3. David Robalino, 2005. "Pensions in the Middle East and North Africa: Time for Change," World Bank Publications - Books, The World Bank Group, number 7427.
    4. Diamandis, Panayiotis F., 2009. "International stock market linkages: Evidence from Latin America," Global Finance Journal, Elsevier, vol. 20(1), pages 13-30.
    5. Barraclough, Simon & Morrow, Martha, 2008. "A grim contradiction: The practice and consequences of corporate social responsibility by British American Tobacco in Malaysia," Social Science & Medicine, Elsevier, vol. 66(8), pages 1784-1796, April.
    6. Disney, Richard & Whitehouse, Edward, 1999. "Pension plans and retirement incentives," Social Protection Discussion Papers and Notes 20851, The World Bank.
    7. Jorge Miguel Bravo, 2016. "Taxation of Pensions in Portugal: Is there a Rationale for a Semi-Dual Income Tax System?," CESifo Working Paper Series 5981, CESifo.
    8. Kayande, U. & de Bruyn, A. & Lilien, G.L. & Rangaswamy, A. & van Bruggen, G.H., 2006. "How Feedback Can Improve Managerial Evaluations of Model-based Marketing Decision Support Systems," ERIM Report Series Research in Management ERS-2006-039-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    9. Byron Lutz, 2011. "The End of Court-Ordered Desegregation," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 130-168, May.
    10. Caner TaskIn, Z. & Tamer Ünal, A., 2009. "Tactical level planning in float glass manufacturing with co-production, random yields and substitutable products," European Journal of Operational Research, Elsevier, vol. 199(1), pages 252-261, November.
    11. Gerard Hughes, 2002. "Private Pensions and Equity in Ireland and the U.K," Papers WP142, Economic and Social Research Institute (ESRI).
    12. Whitehouse, Edward, 2000. "How Poor are the Old? A Survey of Evidence from 44 Countries," MPRA Paper 14177, University Library of Munich, Germany.
    13. Collins Ntim, 2015. "Board diversity and organizational valuation: unravelling the effects of ethnicity and gender," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 167-195, February.
    14. Gora, Marek & Rutkowski, Michal, 1998. "The quest for pension reform : Poland's security through diversity," Social Protection Discussion Papers and Notes 20111, The World Bank.
    15. Landis MacKellar & Robert Holzmann & Jana Repansek, 2009. "Pension Reform in Southeastern Europe : Linking to Labor and Financial Market Reforms," World Bank Publications - Books, The World Bank Group, number 2587.
    16. Miroslav Verbic, 2005. "A Quarterly Econometric Model of the Slovenian Economy," Econometrics 0511015, University Library of Munich, Germany.
    17. repec:ilo:ilowps:457681 is not listed on IDEAS
    18. Akter, R. & Bashar, M.A & Majumder, M.K & Shashid, Sonia B., 2010. "Effect of Community Based Organization microcredit on livelihood improvement," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 8.
    19. Beshears, John & Choi, James J. & Laibson, David & Madrian, Brigitte C., 2017. "Does front-loading taxation increase savings? Evidence from Roth 401(k) introductions," Journal of Public Economics, Elsevier, vol. 151(C), pages 84-95.
    20. Christos Triantopoulos, 2014. "Financial Structure, Income Inequality and Privatization of Risk in the EU," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(3), pages 49-72, July-Sept.
    21. Ming- chin Monique Chu, 2013. "Semiconductor interconnectivity across the Taiwan Strait: a case study approach," Chapters, in: Peter C.Y. Chow (ed.), Economic Integration Across the Taiwan Strait, chapter 9, pages 197-238, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbpubs:2610. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tal Ayalon (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.